Tips for Securing Funding to Purchase a New Family Car
family car
When your old family car kicks the bucket, or you’re just tired of cruising around in a heap of junk, it’s time to consider a new car purchase.
While your mind may run wild with thoughts about what it will be like to drive around in a new car, you first need to think about how you’re going to pay for it.
Here are four great tips for securing the financing you need to purchase a new family car.
Talk With Your Bank
You don’t want to just head to your local dealership and ask for a car loan. They aren’t going to find you the best rates. Rather, you should first head to your local bank.
These are the people that know you and your financial habits. Apply for an auto loan and see what they approve of for you.
Pay close attention to the rate so you can compare it to other credit offers. They should provide you with a pre-approval notice you can take to the dealership to secure the purchase.
Get Rid Of Your Old Car
If you’re going to be getting a new car, you’ll need to dispose of the old one. Don’t make the mistake of taking it to a car dealership and using it as a trade-in.
Most car dealerships won’t give you the true market value of your car. Instead, try to sell the car yourself.
If you are thinking, “I want to sell my junk car,” all you have to do is call up a junk buyer or consider listing the car for private sale.
Think About Down Payment Funds
While you don’t always have to put a down payment on a car, it’s a good idea. It will help to decrease your interest rate and the length of your loan.
Down payment money can come from a variety of sources. You can use the money from selling your old car as a start.
Consider doing some overtime to earn even more or work on that side business to save up. The more money you can bring to the closing table, the better.
Tweak Your Credit Score
Your credit score plays a big role in your ability to borrow money and at what interest rate. You should take a moment to assess what your credit score is before applying for an auto loan.
If your credit score is not in the excellent category, consider trying to increase it before applying for a loan.
Securing financing for your new vehicle purchase is a necessary first step. The above four tips should set you on the right way to funding a new family car.
Just remember that you’re going to be locked into your new auto loan, so you should try and enhance your credit score and bring as much down payment money to the table as you possibly can.
Category: Car Purchase
